The gold market is trading in a technical pennant formation. The yellow metal recently held the bottom of the pennant near $865.00 and now trading near the top around $900.00. This consolidation pattern is not surprising as the markets have been sideways trading on thin volumes in reaction to spring vacations, Passover, Good Friday and Easter Monday. Normal trading conditions should resume this week and slightly more direction should be found as gold breaks out of the range.

From a seasonal perspective gold normally trades sideways to higher in the month of April and sideways to lower in May and June. Keep this in mind as the late spring through early summer months are traditionally a sideways period for gold, and those traders looking for trends should be wary.